The European Securities and Markets Authority has written to the European Commission in relation to additional issues concerning some MiFID II/MiFIR requirements on investor protection and intermediaries.

ESMA has got in on the #Brexit debate with its recent #MiFIDII letter to the EC about investor transparency concerns. https://t.co/h0If3Xlkud pic.twitter.com/yIv9nstBZf

— Virginie O'Shea (@virginieoshea) October 1, 2018

The letter is a follow-up to an earlier letter concerning some MIFID II/MIFIR requirements regarding trading venues.

The letter highlights a number of items, which are relevant in the context of the United Kingdom’s withdrawal from the European Union, in particular:

• Concerns regarding the MiFIR regime for third country firms providing investment services and activities to eligible counterparties and per se professional clients;
• Concerns regarding the MiFID II regime for third country firms providing investment services and activities to retail and professional clients on request;
• Third country firms providing investment services and activities at the exclusive initiative of EU clients (reverse solicitation); and
• Investment firms outsourcing critical or important functions other than those related to portfolio management to third country providers.

Source: ESMA